The process of obtaining a visa in Indonesia, particularly for new business owners, has often been daunting due to the high cost of work permits. However, in 2019, the Indonesian Government introduced the Investor Visa or Investor KITAS, making it significantly easier to obtain and offering substantial financial savings.
The Investor KITAS (Kartu Izin Tinggal Terbatas) is a special type of residence permit designed for foreign investors who want to establish or invest in business activities (PT PMA) in Indonesia. This program is part of the Indonesian government’s efforts to attract foreign investment and promote economic growth.
What is the Investor KITAS and when was it introduced?
The Investor Visa / Investor KITAS is a visa specifically created as one of the investment requirements in Indonesia, allowing foreign companies to live and manage their businesses in the country with relative ease.
Although the Investor KITAS has been in effect since 2011, based on Law Number 6 of 2011 and subsequently amended in 2018, significant changes were implemented in 2019 to make the application process easier. Since then, this type of KITAS has become one of the most popular visas to possess in the country.
What are the advantages of choosing an Investor KITAS over a Working KITAS?
According to the amendments made by BKPM to Presidential decree BKPM no. 5/2019, Indonesia offers additional benefits to investors residing in the country. Previously, investors were required to apply for a Working KITAS (Index code 312) and a working permit, which cost $1,200 per year as a mandatory fund.
However, with the new amendment, investors holding an Investor KITAS no longer need a working permit, resulting in a reduction of $100 per month or $1,200 per year in visa expenses.
How much money can one save by choosing an Investor KITAS over a Working KITAS?
Eligible investors can save a significant amount of money by opting for an Investor KITAS. This visa is available for two terms: one year and two years.
For example, by selecting the two-year Investor KITAS, you can save $2,400 over the term by avoiding the non-compulsory DPKK fund and annual KITAS processing costs.
On average, our customers save approximately 40 million IDR over a two-year visa period!
Who can apply for an Investor KITAS?
Before obtaining an Investor KITAS, the company’s authorized capital must exceed 10 billion rupiahs, with a minimum of 25% of the authorized capital paid up. For companies established before 2009, lower capital investment is possible. Additionally, an investor should have a minimum value of 1 billion rupiahs in personal shares invested in a PMA company and hold the title of either Director or Commissioner.
If you hold no position in a company in Indonesia but have personal shares worth over IDR 1,125,000,000, you are also eligible to apply for an Investor KITAS, although work is not permitted.
Can you work using an Investor KITAS?
As a foreign business investor in Indonesia holding the position of Director, you are allowed to work while having an Investor Kitas. This is stipulated in the Manpower regulation “Permenaker No. 10 the Year 2018” under Article 10, Article 22, and Article 26 point C.
However, if you invest in a company and hold the position of Commissioner, you are not allowed to work. Nevertheless, you can still obtain a stay permit for a maximum of two years. If you, as a Commissioner, wish to work, you must have a minimum share ownership of IDR 1,125,000,000 in the company.
FAQ
More facts about the Investor KITAS will then be explained by LetsMoveIndonesia Jakarta’s visa consultant is transcribed below.
LMI: Is the Investor KITAS renewable, or do you need to cancel it once the term is up?
Yes, the Investor KITAS is renewable.
LMI: Is it possible to obtain an Investor KITAP?
Yes, it is possible to obtain an Investor KITAP.
LMI: Can a company apply for more than one Investor KITAS?
Yes, a company can apply for more than one Investor KITAS as long as the foreigner’s shares are stated in the Deed of Establishment of the Company, and the amount of the share to a minimum of 1 billion IDR.
LMI: Can the Investor Visa support dependent visas?
Yes, the Investor KITAS can support dependent visas.
LMI: How long does it take to process an Investor KITAS?
Since the Recommendation Letter from BKPM is no longer required, the Investor KITAS application process has become faster. Now, we can apply using the online system directly to the Immigration authorities, and your E-Visa should be granted within days.
Previously, all visas were processed in Indonesia, and a TELEX was sent to an Indonesian Embassy overseas. However, due to the Covid-19 pandemic, the Indonesian government introduced E-Visas to reduce the risk of virus transmission. Visa costs are now paid during the application stage in Indonesia, rather than at the Embassy.
Once you have entered Indonesia, you need to convert your VITAS to an Investor KITAS. The conversion process takes approximately 10-14 working days. After submitting your passport to the immigration office, you will schedule a biometric session and then wait for the final steps of conversion. Upon completion, you will receive your new Investor KITAS, allowing you to stay in Indonesia and manage your company.
LMI: What documents are required to process this KITAS?
The required documents include:
- Investor’s passport validity minimum of 18 months for a 1-year KITAS application.
- Company’s deed of establishment and its amendments (if any).
- Ratification from the Ministry of Law and Human Rights (MoLHR) of the company sponsor/SK Kehakiman Pendirian Perusahaan dan Perubahannya (if any).
- Tax Registration Number (NPWP) of the company sponsor.
- Business Domicile.
- Business License.
- Business Identification Number or Nomor Induk Berusaha(NIB).
- ID Card (KTP) and Tax Number / ID (NPWP) of the Indonesian Director of the company sponsor (if needed).
- Blank the document with the company’s letterhead.
- Bank account statement with a minimum balance of USD 1,500.
Please note that the duration granted is based on the validity of the applicant’s passport. If the passport has a minimum of 18 months validity, you will be granted a 1-year Investor KITAS. If the passport has more than 30 months of validity, you can obtain a 2-year KITAS.
How much does this visa cost?
SM: There are two options for the Investor KITAS: one-year and two-year KITAS. In Jakarta, our prices are 15 million IDR for a one-year KITAS and 18 million IDR for a two-year KITAS. Most people choose the two-year option as it provides security and overall savings over the visa term.
LMI: If someone has any questions or needs to know more, how can they contact you?
If you have any further questions you can reach out to the LetsMoveIndonesia team at [email protected] for a FREE consultation. If you are looking to process your next Visa or need help with your Relocation, Company Establishment or Real Estate needs, then contact LetsMoveIndonesia – Indonesia’s Most Trusted Legal & Visa Agency! T: 021 300 297 27 E: [email protected]
Found this article interesting? Then check out these other useful guides about Visa and Company Establishment processes in Indonesia!
The KITAS Process – How to avoid getting ripped off!
The KITAS Process – Everything you need to know before applying for yours!
Visa on arrival in Indonesia (VOA) – Everything you need to know!
Multiple Business Visa – How to get yours!
How to set up a business in Indonesia
Company Establishment – Now Possible in Only 2 Weeks!
Registering a Trademark in Indonesia – How to protect your business
Why use LetsMoveIndonesia to help with your visa?
Over the past few years, we have helped thousands of expatriates from all over the world with their Visa applications, Company Establishment, Real Estate and relocation needs.
Commonly referenced as Indonesia’s Most Trusted Agency, we have achieved notoriety by being the first agency in Jakarta to advertise our Visa & Company Establishment prices both on and offline. We believe in ethical practices which means we are completely transparent about our prices – We don’t charge people different prices based on their nationality, our sales targets or how rich you or your company appears to be – Everyone pays the same.
Most importantly; our customers save on average 25 – 40% by using us rather than our top-ranking Google competitors.
Lastly; we are the only Agency in Jakarta to be located in a mall, so our customers can visit us whenever they like. Have a question or need advice? Come on in whenever is convenient for you.
LetsMoveIndonesia is proud to be the trendsetter in the Expatriate Services Industry in Indonesia – Come and see what all the fuss is about and contact us today!
